ISA 2015 allowance

DreamerFTB

Sorry if this is a common question but I couldn't find an answer.

Last summer I started an ISA account with HSBC and I put 15k in it straightaway to get the maximum interests.

Now after a few months I have 15k + some interests and the new financial year is starting with a new ISA allowance.

I now want to fill the new 2015 allowance from day one, so put the full 2015 allowance amount (£15,240) on the 6th of April, but:

are money exceeding the 15k 2014 allowance (so 2014 interests) counted in the new 2015 allowance? I.e. should I put (£15,240 - interests accrued in 2014) or should I retreive the interests and put £15,240?

Cornucopia

No. Interest generated with each year's ISA stays with it, and doesn't count towards the annual limit.

bowlhead99

You get a new allowance every year. So the existing balance of whatever it is can stay in the existing ISA, or be officially transferred by a new ISA provider into their account (get the new provider to arrange the transfer) AND you can put a whole new £15240 of new money in once the new tax year starts, giving you £30k+ altogether in ISAs.

Of course, ISAs have poor interest rates so unless you have already maxed out all the accounts that pay better there is probably no point in having your £15.5k in an ISA when you could earn more elsewhere and let them tax it and still be better off.

DreamerFTB

Thank you! I'll have a look around if I can find something better within HSBC then.

DreamerFTB

For example this one looks tremendously better, am I missing something?!

Cornucopia

I don't think HSBC offer a high-paying current account or market-leading ISA rates. You will probably need to look elsewhere.

I'm not an expert, but TSB, Nationwide and Santander seem to come up a lot in current account discussions. You are looking for 3%+ with restrictions on the amount invested.

ISAs change all the time, so check the best buy tables after 6th April. You are looking for c. 2%, but you may need a fixed-term investment to get it.

http://www.moneysavingexpert.com/savings/best-cash-isa

DreamerFTB

The one I posted before looks like a potential net 7.2%/year that seems definitely too much to be true. But I don't get what I am missing.

YorkshireBoy

DreamerFTB wrote: »

The one I posted before looks like a potential net 7.2%/year that seems definitely too much to be true. But I don't get what I am missing.

You're missing fact that the 'A' in AER stands for annual!

DreamerFTB

Yes got confused because they state "monthly interests" at the top thank you!

Cornucopia

DreamerFTB wrote: »

The one I posted before looks like a potential net 7.2%/year that seems definitely too much to be true. But I don't get what I am missing.

That's not what comes up on your link.

I've not heard of any product that gets as much as that, though there are one or two regular savings products with a high headline rate (but which are limited because they only allow a monthly deposit of say £250, no initial deposit, and only last for 12 months).

gt94sss2

DreamerFTB wrote: »

Thank you! I'll have a look around if I can find something better within HSBC then.

If you decide to put your money somewhere else (as has been said some current accounts offer more interest) or just delay paying on the 15K in until the end of the ISA year, then you may still want to open a HSBC ISA with £300 if you have an Advance account to take advantage of their Save Together offer.

Regards
Sunil